MGTA01H3 Chapter Notes - Chapter 2: Gross Domestic Product, Purchasing Power Parity, Genuine Progress Indicator

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rubytermite453

1 Aug 2011

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MGTA01H3 Full Course Notes

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All businesses, no matter size, operate within a larger external environment. External environment: everything outside an organization"s boundaries that might affect it: plays a major role in determining success. Managers must have accurate understanding of environment. No single firm can control the environment: however managers should not simply react to change. Economic environment: conditions of the economic system in which an organization operates: ex: mcdonalds is functioning within an environment that has moderate growth, moderate unemployment and low inflation. means most people can afford to eat out but must pay higher wages. low inflation means it pays constant price for supllies. Three keys goals of canadian economy economic growth, economic stability and full employment. Business cycle: pattern of short-term ups and downs (expansions and contractions) in an economy: it has four phases peak, recession, trough + recovery. Recession: a period during with aggregate output declines, as measured by real gdp.

Related Questions

There is a growing debate that the internal environment is more important than the external environment, present your explanations to provide clarity to this issue using simple examples touching on the environmental factors for both environments.